Saudi group acquires 88% shares in National Power Construction Corporation for Rs. 2.5 billion

ISLAMABAD: Saudi group, Mansour Al Mosaid Limited Company, has won the bidding of privatization of National Power Construction Corporation (NPCC) and has acquired 88% shares in NPCC.

Advertisements

Earlier the Cabinet Committee on Privatization has approved the divestment of 88% government share in the NPCC and same were acquired by Mansour Al Mosaid Limited Company for Rs. 1,420 per share in bidding process held yesterday.

Other notable bidder of the NPCC was the consortium of Habib Rafiq Limited and Frontier Works Organization, and consortium of Zahir Khan Brothers & Reliable Engineering Limited. The bid price offered by Mosaid Group was Rs. 871 million higher than later mentioned companies that offered the nearly Rs. 4.63 billion. The share price offered by consortium Zahir Khan Brothers & Reilable Engineering Limited was Rs. 344.5 per share. However, the minimum reference price per share set by Cabinet Committee on Privatization was Rs. 1,119 for the 88% shares.

Advertisements

The government had offered 88% shares from 2 million shares of NPCC for acquisition. The remaining 12% or 240,000 is owned by the NPCC Employees Empowerment Trust under the Benazir Employees Stock Option Scheme.

Chairman Privatization Commission Mohammad Zubair seated the divestment process would fetch about Rs. 2.5 billion. The approval was given at a meeting of the committee in Islamabad with Federal Finance Minister Senator Ishaq Dar in the chair. Briefing the meeting about biding, Chairman Privatization Commission said the divestment process would collect about 2.5 billion rupees in national treasury.

After successful completion of bidding, Mohammad Zubair said, “There is nothing better than a Saudi company acquiring a Pakistani firm. The company would bring Rs. 2.5 billion.”

After successful privatization of NPCC, the government is hopeful for the same result in upcoming privatization of Pakistan International Airline (PIA), Pakistan Steel Mills, Kot Addu Power Company and Faisalabad Electricity Supply Company.